Another rambling night of trade in the currency market as the EUR/USD struggled with the 1.3000 handle after staging a reversal in North American session yesterday. Better risk appetite and the growing political woes of the Obama administration helped fuel Tuesday's rally, but the unit could not hold its gains as dour economic data and steady EURGBP sell flows kept the downward pressure.

In what may be a small glimmer of hope, UK PMI Services printed better than forecast at 42.5 against 40.3 suggesting that UK economy may be finally showing some signs of stabilization. This was the third consecutive PMI reading this week that surprised to the upside lending more credence to the sterling bullish view that the worst of the UK contraction may be over.